Gas prices cause cut backs

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Feeling the squeeze of higher gas prices? You’re not alone. I’m Kristin Arnold with your Personal Finance Minute.

According to a recent poll by – nearly 63% of Americans say that higher gas prices , since the beginning of this year, have caused them to cut back on non-essential spending…such as vacations or dining out. Greg McBride, Senior Financial Analyst with says the economic impact cannot be ignored.

“The sensitivity to gasoline prices voiced by Americans cuts both ways. A sustained pull back in prices would be a boost to the economy, but a renewed increase in gas prices would be a further drag on growth.”

And who is most sensitive to gas prices?

“Higher gasoline prices are most painful to households with below average income. But retirees and those living in rural communities also had a high level of sensitivity to those higher gas prices.”

This poll is part of Bankrate’s monthly Financial Security Index. To see more of May’s poll results, visit I’m Kristin Arnold.